Sensex takes winning spree to 6th day, ends 246 pts higher; YES Bank jumps 8%
In the 30-pack Sensex, 23 stocks ended in the green and seven in the red.
NEW DELHI: Climbing for the sixth-straight day, equity benchmarks Sensex and Nifty ended Friday's trading session with gains, supported by index heavyweights RIL and HDFC Bank.
Firm equity inflows from foreign institutional investors (FIIs) and better-than-expected results from a few companies boosted sentiment, according to experts. Data on China's GDP growth being the slowest in nearly three decades fell on deaf ears, as domestic investors remained unfettered.
FM Nirmala Sitharaman indicating further stimulus in FY20 also kept market participants optimistic.
BSE Sensex closed 246.32 points up, or 0.63 per cent at 39,298.38, while NSE Nifty ended at 11,661.75, up 75.4 points or 0.65 per cent.
UK secured a Brexit deal with EU on Thursday, three years after the vote to leave the bloc, but UK PM Boris Johnson must still win favour in the parliament to get the agreement approved.
September-quarter earnings have proved to be a mixed bag with a few largecaps beating analyst estimates, while others reported underwhelming results. High hopes from Reliance Industries' earnings, that will be announced later today, added to the sentiment.
"There are positives in many sectors and there are possibilities of near-term optimism due to the earnings so far and the global sentiment," said Vinod Nair, head of research at Geojit Financial Services.
The US-market rally this past week pulled up India, said Sanjay Mookim, Director, BofA Merrill Lynch. He added that in the near term, India would move with the global tide.
Market at a glance:
In the 30-pack Sensex, 23 stocks ended in the green and seven in the red with YES Bank finishing as the best performer and Tata Motors the worst. Maruti Suzuki, Power Grid, and L&T too joined YES Bank on the gainers’ list, jumping over 8 per cent.
ICICI Bank, Bharti Airtel and Bajaj Auto were among Sensex stocks that declined.
In terms of index contribution, RIL, HDFC Bank and L&T were chart-toppers while ICICI Bank, Infosys and Bharti Airtel were the top drags on Sensex.
The BSE Midcap index was up 1.78 per cent and the BSE Smallcap index jumped 1.65 per cent, outperforming the benchmark Sensex.
BSE Power index recorded 2.68 per cent gains on the sectoral return chart followed by capital goods, metals and industrials index.
On the global front, both Asian and European stocks stumbled after data showed China's GDP growth slowing to an almost three-decade low, which dragged down the positive sentiment stemming from UK and EU striking a Brexit deal. French carmaker Renault took European markets for a tumble after the arrest of long-time boss Carlos Ghosn. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 per cent while Japan's Nikkei ended 0.18 per cent higher.
"Indian equities outperformed major global markets for the week. The BSE-30 Index gained 3.1% in the past week. Equity markets witnessed a sharp rally on FII buying, progress in US-China trade talks and as well as a deal being reached between UK and EU on Brexit. Infosys and Power Grid were the top losers in the BSE-30 Index, while Tata Motors, Yes Bank and ONGC were the top gainers. On the economy front, CPI inflation rose to 3.99% in September (August: 3.28%), and August IIP growth was at (-)1.1% (July: 4.6%). FPIs bought equities worth US$1.2 bn over the past five trading sessions while DIIs bought US$263 mn worth of equities."
- Sanjeev Zarbade, VP PCG Research, Kotak Securities